No one likes to fall for a scam, especially when it involves money. Yet such scams still go on regardless because the conmen keep learning new tricks. It is no different when it comes to the online retail Forex market. In an industry with a daily transaction of $5.1 trillion, that number could not fail to attract these conmen. Indeed, the fraudsters have filled the industry to a point where legislators are calling for tighter regulation. While that may help to reduce the Forex scams, your safest option is to learn how to spot them yourself. One such company to avoid is the GMOTrading scam that has been in action for a few years. If you have stumbled onto their website and are considering making that deposit, take a few minutes to see how this scam operates.
Clues from the GMOTrading website review
Being an online-based business, most of the information should be obtained from their website, but GMOTrading have failed to do that. If you’re asking, is GMOTrading a scam? Then this is something you have to keep in mind. The best Forex brokers provide all the necessary information a potential client may need before signing up, but not GMOTrading. What they do provide is a license number to show that they are regulated by CySEC, but all the other information is just vague. For example, there was no specific information about their trading conditions.
They claim to offer trading instruments in currency pairs, cryptocurrencies, stocks, metals and other CFDs. Yet there was no list of these instruments on their website, which immediately cast a dark shadow on this GMOTrading review because it showed that they were hiding their trading conditions. The only way to find out, therefore, would have been by opening an account, but why do so when a company seems so suspicious. Besides, there were other red flags right on the website’s homepage like the spreads. A look at the spreads show that they are very wide, even on major currency pairs. The image below shows that the EUR/USD pair had a 2-pip spread at this particular time. Being the most liquid currency pair, the EUR/USD pair usually ranges close to 1 pip, making the GMOTrading spread very wide and expensive.
As if that wasn’t enough, it was very suspicious that the company allows clients residing in the US. Forex brokers are not allowed to solicit clients from the US without a license from the NFA, which GMOTrading does not have. Yet perhaps the biggest clue to the GMOTrading scam was how they only accepted credit cards for fund deposits. We didn’t get so far as to know whether this is the only way to withdraw, but that was very suspicious. Instead of giving away credit card information and risk being stolen from, Forex brokers partner with online payment providers like Skrill and Neteller who are trusted.
That GMOTrading does not have any such partnerships is suspicious enough, especially when you consider they have been in business for almost three years. Furthermore, the doubts about them already in this GMOTrading review show that they may be running a scam simply to get people to give them their credit card numbers to sell later on the Dark Web.
Is GMOTrading legit?
The answer to this question is a resounding no as there is nothing to redeem them from doubt. In an attempt to find out how many people have been scammed by this broker, you should look through the various GMOTrading reviews on trusted websites. Most of them are very negative, with former clients claiming either the markets are manipulated or the company simply doesn’t give them back their money. It would not be surprising to also see several complaints of the company stealing credit card information and draining people’s accounts.